DWS: Uncertainty over unclear policies remains, expected that the Federal Reserve will maintain interest rates unchanged in January

DWS Chief U.S. Economist Christian Scherrmann expects the Federal Reserve to maintain interest rates at the January FOMC meeting, although economic data suggests its stance may be more moderate than in December last year. Uncertainties in policy remain, especially regarding the tariffs and fiscal policies of the Trump administration. The short-term impact of moderately increased tariffs may fade, but large-scale tariff increases could stimulate domestic demand, leading to long-term inflationary pressures. Overall, the Federal Reserve is expected to slightly cut interest rates in March and June, with risks tilted to the upside